- SUI forms a bull flag pattern, eyeing a potential breakout toward the $5 mark.
- Price holds above $3.20 support as RSI and Bollinger Bands confirm ongoing bullish trend.
- Strong fundamentals and rising TVL back bullish sentiment, with institutions showing growing interest.
SUI is consolidating in a classic bull flag formation after a strong rally in late April. The token recently faced resistance near $3.50 and is now trading in a tight range, showing potential for another upward breakout. Traders are watching closely as volume and structure develop.
SUI Trading in Bull Flag Pattern Amid Consolidation Phase
According to an observation by Bitcoinsensus, SUI has formed a bull flag pattern and printed a fresh low within the flag. This structure is often viewed as a continuation pattern, and the recent low is seen as a possible trigger for a breakout. The projected breakout target from the flag is $5, based on the previous rally.
TradingView data shows the token surged from $2.60 to above $3.80 in April, forming the pole of the flag. Since early May, the price has moved sideways in a descending channel, holding above the $3.20 support area. A break above $3.50 could activate the next target near $4.70.
The RSI remains near 64, suggesting that buying pressure is present but not yet overheated. Analysts are monitoring whether RSI moves above 70, which could signal a reversal. Bollinger Bands show the price is above the 20-day simple moving average, indicating that the uptrend remains intact.
Market Sentiment Grows as Fundamentals Support Price
According to CoinMarketCap’s sentiment indicator, SUI is recording bullish community sentiment. Over the past month, the token has risen over 80%, with its TVL now above $1.74 billion. The network also ranks among the top 10 Layer-1 blockchains, with TVL rising 56% in the last month.
The bullish setup is supported by strong fundamentals. 21Shares recently announced a strategic partnership with Sui to increase global access, and Grayscale launched the SUI Trust to grow institutional adoption. If market conditions remain stable and SUI breaks resistance, further upside may follow.
